Entrepreneurs and proprietors, directors, and trustees of registered corporate entities in Nigeria ought to be very well in the know of the need for compliance as regards the annual returns payable to the Corporate Affairs Commission.
The value of the annual returns is fixed depending on the type of the corporate entity – i.e. Business names vs Ltd Companies vs Incorporated Trustees, etc. Default attracts a penalty. After 10 years of default, a risk emerges for the entity to be struck off the Corporate Affairs Commission register.
An advantage of an active status cannot be overstated. Third party entities doing a background check on a business are likely to include the status of the business on the Corporate Affairs Commission’s online portal. Needless to say, an inactive status can put off potential investors, foreign embassies and business grants/ funds providers.
It is wise for a registered corporate entity to be ahead of the curve in maintaining annual returns compliance. A company secretary, or the organization’s lawyer can do this well, keeping an eye on the payment schedule.
Below is the URL/ link to the Corporate Affairs Commission’s platform for seeing the status of companies